APIC ’07: Asia PTA market set for rationalisation

17 May 2007 11:23  [Source: ICIS news]

TAIPEI (ICIS news)--Asian purified terephthalic acid markets (PTA) are oversupplied by about 5m tonnes/year, the equivalent of the annual production of 10 major plants, which will ultimately lead to capacity rationalistation, said Steve Jenkins of PCI Consulting Group on Thursday.

 

As well as rationalisation some units would be idled over the next few years before coming back on stream in 2009-2010 when operating rates began to pick up again, said Jenkins at the Asia Petrochemical Industry Conference (APIC) in Taipei.

 

A number of plant start-ups which were scheduled for 2009-2010 were unlikely to go ahead given the current market conditions, he added.

 

Chinese polyester demand was about 3.5m tonnes/year, said Jenkins and as a result, domestic PTA markets would still have an import requirement of about 5m tonnes/year to 2010.

 

 

By: Jane Gibson
+44 20 8652 3214

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